Spartan Motors Announces the Acquisition of Classic Fire

Charlotte, Mich., Mar 7, 2011 - Spartan Motors, Inc. (Nasdaq:SPAR) today announced the acquisition of Ocala, FL-based Classic Fire. Classic Fire is a manufacturer of fire apparatus that is known for performance, durability and value. The company also...


type='node' cid='411435' />Charlotte, Mich., Mar 7, 2011 - Spartan Motors, Inc. (Nasdaq:SPAR) today announced the acquisition of Ocala, FL-based Classic Fire. Classic Fire is a manufacturer of fire apparatus that is known for performance, durability and value. The company also has an iconic leadership team that enjoys a strong reputation across the industry for innovation, speed and practicality.

"The acquisition of Classic Fire is a clear validation of Spartan Motors' strategic intent. Our top-line growth strategy consists of three elements; growth through corporate alliances as demonstrated by our new Isuzu relationship, organic growth as illustrated by the recent launch of the Spartan Force, and growth through acquisitions as proven here by our acquisition of Classic Fire," said John Sztykiel, Chief Executive Officer, Spartan Motors, Inc. (SMI). "This move illustrates our continued commitment to enhance our leadership position within the Emergency Response industry which will become even more evident in a few weeks at FDIC (Indianapolis, IN) at the largest ER show of the year," added Sztykiel.

Classic Fire brings to SMI an expansive set of growth opportunities enhanced by technology and innovation, people and culture, products and long term strategic fit.

Technology and Innovation

-- An aluminum extruded body structure with one of the highest strength-to-weight ratios in the industry

-- One-touch discharge controls for the Compressed Air Foam System (CAFS) are integrated into the truck's multiplex system

-- A proprietary system of pump modules

People and Culture

-- A leadership team with proven industry experience, credibility and relationships consisting of Ron Ewers who has over 30 years of industry experience, and Jim White who also has over 30 years of experience with a focus on manufacturing and operations

-- A company-wide focus on lean initiatives, operational cost controls and Value Analysis/Value Engineering

-- A product development process anchored around speed, innovation and excellent customer service

-- A team of fire industry veterans with a rich history of innovation and revenue growth that will continue to lead the Classic Fire operations as well as assist elsewhere in the SMI organization

Products

-- A broad product portfolio consisting of Mini-Pumpers, Tankers, Brush Trucks, Quick Attacks, Urban Interface and Light Rescues -- which in 2010 generated revenues of approximately $10 million

-- Tuned for value and will enable our dealers to meet a broad range of customer needs and price points

-- Highly regarded as durable fire apparatus with customer-valued innovations that allow for easy operation and simplified maintenance

-- Products with a price/value relationship that delights customers

Strategic Fit

-- Complementary product offering to the current Crimson Fire portfolio which allows Spartan to cover more segments, price points, applications, and customer needs than ever before

-- Provides strategic sourcing of proprietary pump modules, and technology for the Spartan Chassis OEM market

-- Allows Spartan to better meet the price points required of an industry challenged by weaknesses in municipal funding

-- Classic Fire acquisition does much more than add scale to the SMI Emergency Response revenue stream. It provides expanded coverage of a key growth segment and enriches Spartan with industry experts that complement those in place at Spartan Chassis and Crimson Fire.

The transaction is structured as an asset purchase and closing will be effective April 1, 2011.

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